Commodity turnover. How we increased the income of a clothing store by 8%

Our client, women’s clothing store “Sapon”, had a logistics problem: in some warehouses, there were too many goods left unsold, while the others had a shortage.

Without the sales analysis, it was difficult for them to determine how many trousers to send to one store and how many beige blouses to send to another in order to receive the maximum profit during a certain period.

We found a solution and calculated the turnover, one of the main indicators of the company’s logistics system.

What is a commodity turnover

The commodity turnover is a percentage of goods sold in a particular period.

The purpose of the analysis of turnover is to understand how quickly the product pays off and how quickly the average stock in the warehouse sells.

Large stocks freeze capital and the company cannot grow. Therefore, the higher the turnover, the better. At the same time, if you are aiming for a high turnover, do not forget that with a decrease in stock, there may be a shortage and you will lose potential buyers.First of all, it is necessary to find a ratio in which the goods are not laying in warehouses and customers have a certain guarantee to find a particular item.

To count the turnover it is necessary to determine the following parameters:

Period of time. It may be a week, a month, a quarter, a year.

Average inventory in this period.

The turnover.

To count the efficiency of the commodity turnover:

determine the desired turnover for meeting the strategic goals of the business;

observe the dynamics of turnover from period to period;

If you pay the suppliers on a credit basis, that is, you pay for the goods with a delay, you need to calculate the ratio of turnover and the credit for the goods.

How we calculated the commodity turnover

Turnover in days shows how many days are needed to sell an average stock. It is calculated by the formula:

Turnover in days = Average inventory * number of days / Turnover for this period

Then we made a dashboard:

This report shows the remains of each item in the assortment by warehouses and the turnover in stores. We see that the turnover in one shop is worse than in another, and it is necessary to transport part of the goods. At the bottom of the table, you can see the remnants of the goods, distributed by characteristics.

This table shows the turnover of each item in the range. In the left corner, you can choose a solution for each product: additional order for increased demand, devaluation at reduced and moving to another warehouse.

The commodity turnover report by categories:

Findings. Analysis of turnover and sales in general, help to properly plan the work of the enterprise and increase profitability. Visual reports will simplify the work of the manager. If necessary, we will provide advice – find the “pain points” in business analytics and fix it. Contact us contact@datatreya.com

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